A Theoretical Analysis of Precarious Job Market in India and its various impacts

There has been faster growth in the informal or unorganized unemployment significantly affecting labor market regimes globally. Apart from widening the wage inequality and rise in dispersion of earnings across the country, there are social as well as health impacts also due to precarious job environment. In this paper, there will be discussion about the determinants and trends in employment in labor market particularly in context of temporary jobs. The period of study is 2000-01 to 2010-11. The information has been gathered from secondary sources like articles, research papers, books and other such piece of information. It has been found that the growth rate in precarious jobs has been quite high since 2000-01. Even if it reduces the unemployment rate in the country, but still it does not increase the wage premium and contentment in professional life of precarious employees. Indian labor market has been inclining more towards temporary jobs and works, particularly in private organizations, to have cost reduction. They are least concerned about the provision of wage premiums and working conditions both for males as well as that of females. Temporary jobs have drastic impact over health, safety, security, working conditions, human capital formation, minimum wage rates, promotion and perks in the job, and also satisfaction in personal life. Precarity promotes neither economic efficiency nor decent work and hence is bad from both economic and normative lenses. Then, formalization of labour market is important.